831. Deputy Peter Roche asked the Tánaiste and Minister for Finance if he will outline the policy rationale for the requirement under the help to buy scheme that a first-time buyer's mortgage must be at least 70 per cent of the purchase price or approved valuation of a qualifying property; and if he will make a statement on the matter. [59168/26]

833. Deputy Peter Roche asked the Tánaiste and Minister for Finance whether his Department has conducted an assessment of the impact of the 70 per cent mortgage requirement under the help to buy scheme on single applicants, self-builders and applicants in rural areas; and if he will publish the findings of such an assessment. [59170/26]

834. Deputy Peter Roche asked the Tánaiste and Minister for Finance if consideration is being given to amending the help to buy scheme eligibility criteria to allow first-time buyers who have substantial savings or family support to qualify for the scheme where they otherwise meet all eligibility requirements but do not satisfy the 70 per cent mortgage threshold; and if he will make a statement on the matter. [59171/26]

835. Deputy Peter Roche asked the Tánaiste and Minister for Finance if he is aware of concerns that the 70 per cent mortgage requirement under the help to buy scheme may incentivise applicants to borrow more than is necessary in order to qualify for support; whether this matter has been examined by his Department; and if he will make a statement on the matter. [59172/26]

I propose to take Questions Nos. 831, 833, 834 and 835 together.

The Help to Buy (HTB) incentive, is a tax-based scheme to assist first-time purchasers with the deposit they need to buy or build a new house or apartment. It also aims to encourage additional supply of new houses by supporting demand.

HTB provides a refund of Income Tax and Deposit Interest Retention Tax (DIRT) paid in Ireland over the previous four years, subject to limits outlined in the legislation.

The level of support available to first time buyers under the HTB scheme, is whichever is the lesser of:

• €30,000; or

• 10% of the purchase price of the new property; or

• the amount of Income Tax and DIRT paid in the four years before application for the relief.

For a property to qualify for the HTB scheme, it must be new or converted for use as a dwelling, having not previously been used as a dwelling. Additionally, the purchase value/approved valuation of the property must not exceed €500,000.

Based on the latest available data (30 June 2026), the scheme has supported over 67,000 individuals or couples to buy or build their own home.

The Programme for Government commits to the retention and revision of the HTB scheme.

One condition of the HTB scheme is that a qualifying first-time purchaser (“FTP”) must take out a loan in an amount equal to at least 70% of the purchase value of the property. The Revenue Help to Buy Annual Report 2025 notes that 70% of HTB claimants had an LTV of 85% more. The proportion of claims in the lower LTV bands is higher for self-builds. Raising the LTV requirement may exclude many self-build applicants from the scheme. In the case of a self-build property, the purchase value is the approved valuation of the self-build property, as approved by the lender in accordance with the Central Bank’s macro prudential rules.

The HTB scheme, was initially intended to be limited to persons who had mortgages with a minimum LTV of 80%. However, Central Bank data indicated that a sizable number of first-time buyers take out a mortgage with a LTV of less than 80%. As such, it was decided to amend the scheme to set the minimum LTV at 70% so as to ensure that first-time buyers did not feel compelled to borrow larger amounts than they would have otherwise in order to qualify for the scheme. Indeed, the Central Bank macro-prudential rules also limit mortgage borrowing in order to protect borrowers.

Individuals who are in the position of being able to avail of a mortgage at a lower LTV than 70% are considered to have sufficient resources to meet the deposit requirements of the macro-prudential rules and thus less in need of assistance from the Exchequer. Lowering the LTV ceiling would therefore only increase deadweight in the scheme.

A number of reviews on HTB have been undertaken focusing on a range of broad issues including LTV. In 2017 an independent review of the Help to Buy incentive was completed and published. In 2018 an independent Cost Benefit Analysis (CBA) of the Help to Buy incentive was carried out and published. An independent review of the HTB scheme conducted by Mazars took place in 2022 and was published on Budget Day that year. Indeed, the 2022 review recommended that the LTV be increased to 80% for purchasers availing of HTB.

Finally, in relation to the Deputy's suggestion that the HTB LTV requirement be amended, as the Deputy will appreciate, decisions regarding taxation measures are made in the context of the annual Budget and Finance Bill processes, at the appropriate time, having regard to the sound management of the public finances and the commitments set out in the Programme for Government and the impact any proposed changes would have on the wider housing market. It is a longstanding practice of the Minister for Finance not to comment in advance of the Budget on any tax matters which might be the subject of Budget decisions.